3) Tesla, Inc. (NASDAQ:TSLA)
Number of hedge fund holders: 85
Tesla, Inc. (NASDAQ:TSLA) is a vertically integrated sustainable energy company, aiming to transition the world to electric mobility by making electric vehicles.
The company’s intangible assets (brand value) and cost advantages are expected to act as primary drivers of revenue growth in upcoming years. Its strong brand cachet as a luxury automaker results in premium pricing, and EV manufacturing expertise allows the company to manufacture vehicles more cheaply as compared to competitors.
Tesla, Inc. (NASDAQ:TSLA)’s entry into high-performance computing is backed by the company’s strategic initiatives revolving around artificial intelligence (AI) and machine learning (ML). The company has envisioned a future in which both these technologies will play a central role in enhancing the capabilities of its vehicles.
Tesla, Inc. (NASDAQ:TSLA)’s supercomputer, Dojo, is expected to be a computing giant by 2024 end. With forecasts pointing to an expansion to 300,000 GPUs, Wall Street analysts believe that this supercomputer should achieve 100 ExaFLOPs of compute power. This is expected to further solidify the company’s lead in integrating AI and ML in its products.
Moving forward, the company’s focus on reducing its vehicle manufacturing costs, accelerating the launch of new models, and huge investments in lucrative AI initiatives should drive long-term growth.
In 2Q 2024, Tesla, Inc. (NASDAQ:TSLA) achieved record quarterly revenues amidst the difficult operating environment. Its Energy Storage business has been growing rapidly, setting a record in 2Q 2024 with 9.4 GWh of deployments. This resulted in record revenues and gross profits for the overall segment. Tesla, Inc. (NASDAQ:TSLA)’s plans for new vehicles, which include more affordable models, are on track for the start of production in 1H 2025. These vehicles are expected to utilize aspects of the next-generation and current platforms.
The number of hedge funds tracked by Insider Monkey owning stakes in Tesla, Inc. (NASDAQ:TSLA) grew to 85 in 2Q 2024, from 74 in the previous quarter.
China Renaissance raised the shares of Tesla, Inc. (NASDAQ:TSLA) from a “Hold” rating to a “Buy” rating. They gave a price target of $290.00 on 5th July. Baron Funds, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
